Intermountain Community Bancorp reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, net loss applicable to common shareholders totaled $2,658,000 compared to net income applicable to common shareholders of $226,000 for the same period last year. Loss per fully diluted share applicable to common shareholders was $0.32 per share compared to earnings per fully diluted share applicable to common shareholders of $0.03 per share for the same period last year. Net interest income totaled $9,661,000 compared to $11,110,000 for the same period last year. Total interest income was $13,603,000 compared to total interest income of $16,089,000 for the same period last year. Loss before income taxes was $3,944,000 against income before income taxes was $228,000 for the same period a year earlier. Net loss was $2,242,000 against net income of $226,000 for the same period a year earlier. Negative return on average assets was 0.82% compared to return on average assets of 0.09% for the same period of last year. Negative return on average common equity was 14.49% compared to return on average common equity of 1.01% for the same period of last year. For the nine months, the company reported net loss applicable to common shareholders totaled $14,607,000 compared to net income applicable to common shareholders of $4,149,000 for the same period last year. Loss per fully diluted share applicable to common shareholders was $1.75 compared to earnings per fully diluted share applicable to common shareholders of $0.49 for the same period last year. Net interest income totaled $29,775,000 compared to $33,611,000 for the same period last year. Total interest income was $42,433,000 compared to total interest income of $49,131,000 for the same period last year. Loss before income taxes was $22,505,000 against income before income taxes was $6,447,000 for the same period a year earlier. Net loss was $13,362,000 against net income of $4,149,000 for the same period a year earlier. Negative return on average assets was 1.64% compared to return on average assets of 0.53% for the same period of last year. Negative return on average common equity was 24.79% compared to return on average common equity of 6.13% for the same period of last year. Book value per common share at September 30, 2009 totaled $8.63 compared to $8.76 at June 30, 2009, and $10.71 at September 30, 2008.

On August 7, 2009, director Barbara Strickfaden delivered a letter of resignation as a member of the board of directors of Intermountain Community Bancorp and Panhandle State Bank, effectively immediately. Ms. Strickfaden advised the Board that she had accepted a position as Constituent Services Director for U.S. Senator James E. Risch. Under Senate rules, staff members are prohibited from sitting on the board of a public company.

Intermountain Community Bancorp reported un-audited consolidated earnings results for the second quarter and six months ended June 30, 2009. The net loss applicable to common shareholders, which includes payment of $415,000 in preferred dividends, was $11.4 million, compared to a net loss applicable to common shareholders of $532,000 in the first quarter of 2009 and net income of $2.3 million for the same period a year ago. The decline in earnings over second quarter 2008 reflected significant increased provisions for loan losses totaling $18.7 million compared to $2.1 million in the same period a year ago, as the company added to its reserve for loan losses and adjusted real estate loan and property valuations down to reflect continuing declines in its local markets. After payment of the preferred stock dividend, the net loss per fully diluted share applicable to common shareholders for second quarter 2009 was $1.37 compared to fully diluted earnings per share of $0.27 during the same period in 2008. Net loss applicable to common shareholders for the quarter ended June 30, 2009 totaled $11.4 million, compared to a net loss applicable to common shareholders of $532,000 in the first quarter of 2009 and net income of $2.3 million in the second quarter of 2008. Net interest income before provision for loan losses totaled $10.2 million for the quarter ended June 30, 2009, an increase of $310,000, or 3.1%, from the first quarter 2009 and a decline of $964,000 from the second quarter of 2008. The improvement from the sequential quarter reflected improved margin, as asset yields stabilized and funding costs dropped. The deterioration from 2008 resulted from the company's move to a more conservative, lower-yielding asset mix and rapidly declining asset yields in the second half of 2008, as market rates decreased substantially. Other income for the second quarter totaled $2.7 million, compared to $3.5 million for the sequential quarter and $5.2 million for the second quarter 2008. Book value per common share at June 30, 2009, totaled $8.76 compared to $10.06 at March 31, 2009, and $10.90 at June 30, 2008. Tangible book value per common share totaled $7.31 versus $8.60 at March 31, 2009 and $9.42 at June 30, 2008. Loss before income taxes was $18,434 million compared to $3.632 million of prior year period. Return on average assets was negative at 4.02% against positive 0.88% of previous year period. Return on average common shareholders' equity was negative at 58.18% compared to positive 10.00% of previous year period. For the first six months of 2009, the net loss applicable to shareholders was $11.9 million versus net income of $3.9 million in the same period of 2008. Net loss was $11.120 million or $1.43 basic and diluted per share compared to net income of $3.923 million or $0.46 diluted per share for the same period of last year. Return on average assets was negative at 2.04% compared to positive 0.76% for the comparable period of last year. Return on average common shareholders' equity was negative at 29.77% against positive 8.68% for the same period a year ago. Net interest income was $20.114 million against $22.501 million of prior year period. Loss before income taxes was $18.560 million compared to income of $6.219 million for the comparable period of last year.